2018 FINANCIAL ANALYSIS
KING AIR C90 SERIES
WITH THE BLACKHAWK XP135A
ENGINE PERFORMANCE UPGRADE
PROVIDED BY CONKLIN & DE DECKER
Conklin & de Decker
62B Cranberry Highway
Orleans, MA 02653
Phone (508) 255-5975
FINANCIAL ANALYSIS
BLACKHAWK XP135A ENGINE+ UPGRADE
FOR THE KING AIR C90 SERIES
INTRODUCTION
Blackhawk Modifications, Inc. has an engine modification program to upgrade the PT6A-21
engine of the King Air C90 family to a PT6A-135A engine. The PT6A-135A engine upgrade
offers several advantages:
• More power at altitude
• Faster cruise speed at altitude
• Potential for reduced operating costs
• Potential for enhanced resale value
This report examines each in turn.
Note: The costs and assumptions used are typical estimates based on known costs and market
conditions. These calculations do not represent any financial guarantee of return.
ENHANCED PERFORMANCE
The King Air C90GT with the PT6A-135A engines has the same performance at a given weight
as the Blackhawk XP135A. All XP135A performance estimates were based on the C90GT
flight manual performance data. For the standard C90, the C90A flight manual performance
data was used.
Up to about 14,000 feet at ISA, the PT6A-21 delivers its full take-off torque. At recommended
cruise, this is 1,315 ft/lbs per engine. Above this altitude, the engine loses torque and at 26,000
feet produces only 862 ft/lbs torque. This yields 235 KTAS for a mid-weight King Air C90A.
At normal cruise, the PT6A-135A produces 1,520 ft/lbs torque up to 18,000 feet . At 26,000
feet, it still produces 1,170 ft/lbs torque—36% more power than the PT6A-21. This additional
power results in faster climbs to higher altitudes.
TIME TO CLIMB IN MINUTES
Take off at 9,000 lbs, ISA, No-wind
1
2
C90A
XP135A
To FL160
9
7
To FL220
14
12
To FL260
19
15
The XP
Advantage
An average
of 21%
quicker climb
time
Model C90A performance, page 5-32
Model C90GT performance, page 5-46
Blackhawk Modifications, Inc.
7601 Karl May Drive | Waco, TX 76708
Phone: 254.755.6711 | www.blackhawk.aero
Report based on research prepared by Conklin &
de Decker Aviation Information | Page 2
FINANCIAL ANALYSIS
BLACKHAWK XP135A ENGINE+ UPGRADE
FOR THE KING AIR C90 SERIES
The XP135A
cruise speeds
are from 10% to
14% greater than
the standard
C90A.
CRUISE PERFORMANCE
8,500 lbs, Max Cruise 1900 RPM, ISA
FL160
C90A
XP135A
Torque (ft/lbs/Engine)
1,246
1,520
Fuel Flow (lbs/hr)
592
642
Speed (KTAS)
247
272
1,014
1,355
Fuel Flow (lbs/hr)
490
576
Speed (KTAS)
241
271
Torque (ft/lbs/Engine)
862
1,170
Fuel Flow (lbs/hr)
422
504
Speed (KTAS)
235
267
The XP Advantage
25 knots faster
FL220
Torque (ft/lbs/Engine)
29 knots faster
FL260
32 knots faster
If long range and efficiency is required, you still have the option of climbing to higher altitudes
and reducing power to maximum range cruise. Even though the PT6A-135A is more powerful
than the PT6A-21, if needed, it can also be more efficient.
EFFICIENT PERFORMANCE
8,500 lbs, Max Range 1900 RPM, ISA
FL260
C90A
XP135A
Fuel Flow (lbs/hr)
304
302
Speed (KTAS)
195
202
The XP Advantage
Less fuel, more speed
For “real world” considerations, we calculated a typical trip of 700 nautical miles (NM).
We flew each aircraft at FL260 with four passengers and NBAA IFR fuel reserves for a 200
NM alternate. Because the Blackhawk XP135A has a significant power advantage over the
C90A, it arrives 21 minutes sooner, and yet, burns little more fuel.
Trip Distance
Altitude
Time (take-off to touch down)
Average Speed
Average Fuel Used
Blackhawk Modifications, Inc.
7601 Karl May Drive | Waco, TX 76708
Phone: 254.755.6711 | www.blackhawk.aero
King Air C90A
Blackhawk XP135A
700 NM
700 NM
FL260
2 hrs 46.6 mins.
252 kts
1,470 lbs
3 hrs 7.5 mins.
224 kts
1,390 lbs
Report based on research prepared by Conklin &
de Decker Aviation Information | Page 3
FINANCIAL ANALYSIS
BLACKHAWK XP135A ENGINE+ UPGRADE
FOR THE KING AIR C90 SERIES
Based on the 700 NM trip, we calculated the annual hours for 61,604 NM utilization—equates
to the average utilization of 275 hours/year for a PT6A-21 powered model C90.
Flight Time for 61,604 NM/Yr
Fuel for 61,604 NM/Yr
King Air C90A
Blackhawk XP135A
275.0 hrs
18,263 gallons
244.4 hours
19,315 gallons
For an average year’s travel, the Blackhawk XP135A saves time at a marginally higher fuel
usage than the standard King Air C90A.
REDUCED OPERATING COSTS
The PT6A-135A, in addition to being more powerful than the PT6A-21 engine, also costs
less to maintain.
ENGINE SET-ASIDE
PT6A-21
Cost
Interval
Mid-life
$32,100
1800 hrs
Overhaul
$229,000
3600 hrs
Total for two engines
$552,200
$145.06 per hour set-aside
PT6A-135A
Cost
Interval
Mid-life
$30,000
1800 hrs
1st Overhaul
$200,000
3600 hrs
Total for two engines
$460,000
$127.78 per hour set-aside
At a PT6A-21 overhaul, the engine conversion to the Blackhawk XP135A would avoid a
potential overhaul expense of $458,000 for a pair of engines.
Using the Conklin & de Decker Life Cycle Cost data, we calculated the average hourly costs
for a King Air C90A and a Blackhawk XP135A . The costs calculated were for 10 years and
are averages for the following items:
• Fuel. Fuel burn was calculated for a 700-nautical-mile trip using the manufacturer’s
aircraft performance manuals. It was assumed that four passengers plus bags (200
lb each) were on board; fuel reserves were based upon an NBAA IFR 200 NM alternate. Standard conditions (ISA), no-wind were used.
• Maintenance Labor. This is the labor required to accomplish scheduled and
unscheduled maintenance on this aircraft.
• Parts. This is the cost of parts required to accomplish all unscheduled and minor
scheduled maintenance on this aircraft.
• Engine Restoral. As calculated above. Assumes the engines make it to overhaul
without incurring a premature removal and that the expenses are typical for that
engine.
3
Vref Aircraft Value Reference (resale price guide) average annual hours for a C90
Blackhawk Modifications, Inc.
7601 Karl May Drive | Waco, TX 76708
Phone: 254.755.6711 | www.blackhawk.aero
Report based on research prepared by Conklin &
de Decker Aviation Information | Page 4
FINANCIAL ANALYSIS
BLACKHAWK XP135A ENGINE+ UPGRADE
FOR THE KING AIR C90 SERIES
• Guaranteed Maintenance Plan for the Engines or any other component was not
used.
• Component Overhaul (All). This covers set-asides for the estimated cost of major
component overhauls. This includes the propellers.
• Life Limited Components (All). This covers set-asides for the estimated cost of
major life limited components.
At $4.00 per gallon
average fuel cost, the
typical annual
operating cost of a
Blackhawk XP135A is
12% less than for a
C90A.
The average Non-fuel Variable Costs were calculated and then the fuel savings were calculated separately. The non-fuel variable costs are detailed in Appendix A and are:
Non Fuel Cost/Flight Hour
King Air C90A
Blackhawk XP135A
$587.87
WHEN TO DO THE CONVERSION?
OPERATING COST COMPARISON
At Overhaul:
The typical cost of the Blackhawk XP135A conversion is $709,000.
King Air C90A
NM Flown/Year
61,604
Hours
275
Variable Cost/Hr. - no fuel
$644.00
Fuel Cost/hr ($4.00/gal)
$264.00
Average Variable Cost/Hr
$908.00
TOTAL Variable Cost/Year
$249,700.00
Blackhawk XP135A
Conversion at Overhaul
(2) PT6A-21 overhaul avoided
(2) PT6A-135A conversions
Net Cost = Initial Investment
($458,000)
$709,000
$251,000
When accounting for the PT6A-21 overhaul costs avoided, the
Blackhawk conversion has a net cost of only $251,000.
These costs ignore the value added to a PT6A-135A powered King Air.
NM Flown/Year
61,604
Hours
244.4
Variable Cost/Hr. - no fuel
$587.00
Fuel Cost/hr ($4.00/gal)
$316.00
Average Variable Cost/Hr
$903.00
TOTAL Variable Cost/Year
$220,693.20
Annual Operating Cost
SAVINGS
$29,007.00
No Need to Wait:
Due to both lower operating costs and the credits received for engines with
time remaining to overhaul, an operator need not wait to reap the
consider-able benefits of upgrading to the Blackhawk XP135A engines.
POTENTIAL FOR ADDED RESALE VALUE
The Blackhawk XP135A has established a record of increased value after the conversion. A
popular aircraft value reference, Vref, in their appraisal points for the King Air C90 adds
$709,000 to the aircraft value for Blackhawk conversion4.
It is doubtful to assume that an operator will perform the conversion just to sell their King Air
immediately afterwards. However, if a sale after conversion were required, there is a very
high likelihood of enhanced value.
Blackhawk Modifications, Inc.
7601 Karl May Drive | Waco, TX 76708
Phone: 254.755.6711 | www.blackhawk.aero
Report based on research prepared by Conklin &
de Decker Aviation Information | Page 5
FINANCIAL ANALYSIS
BLACKHAWK XP135A ENGINE+ UPGRADE
FOR THE KING AIR C90 SERIES
What about over a period of time? Return on Investment has a number of ways to be calculated. In this analysis we used the following considerations:
• Five years operation at 244 hours per year with operating cost savings.
• A reduction in the enhanced value of the Blackhawk XP135A engines based upon
the Vref value adjustment method for engine time of a PT6A-135A of $55.55 per
engine hour. (First overhaul estimate of $200,000 divided by 3600 hours).
A reduction in the enhanced value of the King Air C90's added value of 5% per
year estimated market depreciation (i.e. the added value of the conversion declines
at 5% per year). We also looked at the annual operating cost savings of operating
the Blackhawk XP135A as compared to a standard C90A. If performing the conversion
at the time the PT6A-21 engines are due for overhaul, the five year Return on
Investment looks like this:
POTENTIAL FOR ADDED RESEALE VALUE AFTER 5 YEARS
Return on
Investment
Blackhawk XP135A
Total Operating Cost
Savings
Annual Return
Enhanced value
At Conversion
$709,000
After Year 1
$673,550
$29,007
$702,557
After Year 2
$639,872
$58,014
$697,886
After Year 3
$607,879
$87,021
$694,900
After Year 4
$577,485
$116,028
$693,513
After Year 5
$548,610
$145,035
$693,645
Initial Investment
(251,000)
Added Residual Value After 5 Years
$548,610
Operating Costs Saved After 5 Years
$145,035
Excess return over initial investment if converted at mid-life
$442,645
After five years of operation, there is still a net excess return over the initial investment of
the Blackhawk XP135A conversion.
CONCLUSION
Our analysis shows that for a King Air C90A operator whose engines require overhaul, an
engine upgrade to the PT6A-135A offers increased performance, increased efficiency, and net
cost savings due to the value added offsetting the expense of the conversion. An operator
need not wait until overhaul to experience the considerable operational savings and superior
resale values associated with the Blackhawk XP135A engine upgrade.
Blackhawk Modifications, Inc.
7601 Karl May Drive | Waco, TX 76708
Phone: 254.755.6711 | www.blackhawk.aero
Report based on research prepared by Conklin &
de Decker Aviation Information | Page 6
FINANCIAL ANALYSIS
BLACKHAWK XP135A ENGINE+ UPGRADE
FOR THE KING AIR C90 SERIES
APPENDIX A KING AIR C90A VS. BLACKHAWK XP135A
Direct Cost (average)
Used King Air C90A
Used King Air
Blackhawk
XP135A
Fuel
-
Fuel Additives/Lubicants
-
-
Maintenance Labor
$153.94
$146.55
Parts
$208.35
$185.95
Inspections
$88.47
$77.38
Engine Restoral
$145.06
$127.78
Engine Guaranteed Mx Plan
-
-
Component Overhaul (all)
$26.72
$26.79
Life Limited Components (all)
$21.71
$23.42
Other Services
-
-
Flight HourCost
-
-
Fixed Cost
-
-
Landing/Parking Fees
-
-
Crew Expenses
-
-
Small Supplies
-
-
$644.03
$587.87
Total Direct Cost per Hour/10 yr. avg.
Calculated with Conklin & de Decker Aircraft Cost Evaluator (Win)
Type of Operation: Corporate; Program Length: 10 years
Blackhawk Modifications, Inc.
7601 Karl May Drive | Waco, TX 76708
Phone: 254.755.6711 | www.blackhawk.aero
Report based on research prepared by Conklin &
de Decker Aviation Information | Page 7